Bitcoin News Today: September 2025: The Catalyst Igniting Altcoin Season 2.0

Bitcoin’s dominance in the cryptocurrency market has declined significantly, marking a potential turning point for altcoins in 2025. The Bitcoin Dominance Rate (BTCD), which had held steady for over 1,000 days as of September 2022, has reversed course since mid-2025, with a 10% drop bringing it down to 59.18%. Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) have confirmed a bearish trend, suggesting that altcoins are likely to outperform Bitcoin in the near term [1].

This shift in market dynamics has sparked speculation that 2025 may witness one of the strongest altcoin seasons since 2021. The Altcoin Market Cap (ALTCAP), while having reached a new cycle high on August 14, has since declined below $1.60 trillion, failing to maintain the breakout. This has been accompanied by bearish divergence in key technical indicators, signaling further downward pressure in the short term. However, wave count analysis suggests the market is in the fourth wave of a larger upward movement, with potential support levels at $1.35–$1.43 trillion, followed by a possible new all-time high [1].

September 2025 is emerging as a pivotal month for altcoin investors. With the Federal Reserve’s rate cuts and the continued accumulation of liquidity in money market funds—currently holding over $7 trillion—there is growing anticipation that these funds could flow into risk assets such as cryptocurrencies [2]. The recent movement of $200 billion into money market funds since June, juxtaposed with a continued uptrend in crypto prices, suggests a unique market dynamic that could lead to a surge in altcoin demand. Ethereum has become a central player in this development, with its market cap rising over 50% since early July, while institutional demand for digital assets has repositioned Ethereum as core infrastructure for traditional finance [2].

Among altcoins, Lido (LDO) has shown particularly strong performance, driven by growing institutional interest in Ethereum staking and recent regulatory clarity from the U.S. Securities and Exchange Commission (SEC). LDO’s price volatility has been approximately 1.5 times that of Ethereum, indicating both higher upside and risk. The SEC’s non-binding staff-level interpretation regarding staking tokens could shift as litigation progresses, making LDO a high-potential yet speculative play [2].

Small-cap altcoins, while currently experiencing short-term corrections, could see renewed strength in the fourth quarter. Analysis indicates that small-cap altcoins are in a corrective phase within a larger bullish trend, with technical patterns suggesting a breakdown could precede a new rally. The overall market is shifting from a Bitcoin-dominated narrative to a more diversified landscape, supported by macroeconomic trends, improved liquidity metrics, and clearer regulatory environments [2].

While short-term volatility and corrections are expected, the broader trend for altcoins remains positive. With Bitcoin’s dominance continuing to decline and retail investors increasingly favoring altcoins, September appears to be the catalyst for a full-fledged altcoin season in 2025. Investors are advised to monitor institutional movements, regulatory updates, and liquidity flows as these factors will likely shape the performance of altcoins in the coming months [1].

Source:

[1] Why 2025 Is Shaping Up as the Strongest Altcoin Season Yet (https://www.ccn.com/analysis/crypto/2025-strongest-altcoin-season-yet/)

[2] [Altcoin Season 2025] Why September Marks the Crypto (https://www.reddit.com/r/CryptoCurrency/comments/1mwv2rd/altcoin_season_2025_why_september_marks_the/)